This article is not about health and medicine. I write here in this column about anything that I consider important for the reader. This one is about our society. Please read it till the end, as it may help us become more intelligent, by better understanding why humanity suffers so much.
As a doctor, it is a feeling that comes from the depths of my being. When faced with the loss of health, a picture of illness, especially a serious and poorly understood one, I have an absurd desire to help, evaluate, diagnose, and find a treatment solution. A path of improvement, based on an understanding of the situation.
This is what happens to me today. The sick patient is our society. The whole world. And there is that desire to help understand and find solutions. After all, society's illness affects us all.
In this article, I will share with you my current evaluation of why our societies are suffering so much. What are the signs and symptoms, the clinical picture, what is the diagnosis, and the possible treatment.
This is not a medical work of mine. It is a work of a social philosopher (thankfully, there is still no mandatory degree for a social philosopher).
This evaluation is not free from errors, as we never are, or the need for corrections in the future, but it is an evaluation that can help you, as it helps me, at least, like every patient who finds an explanation for their problems and paths to solutions, to feel better by knowing what to do to get rid of suffering and improve oneself and all of us.
Signs and symptoms of the social disease
The signs and symptoms have been clear for many decades. However, they seem to have worsened in recent years. It starts with economic crises. People become poorer, unable to acquire basic assets such as their own homes and savings for the future. This can be summarized as a general economic insecurity. It's not just happening in your country; with global inflation, it's happening all over the world. Economic insecurity is a clear type of suffering. Have you ever experienced this?
Another suffering that has worsened in recent times is personal health insecurity. Millions of people, in fact billions, worldwide suffer from chronic diseases that they should not have to suffer from. They spend the last decades of their lives burdened with dependency on precarious or expensive health systems and medications, spending a good portion of their income or savings on this, or worse, their remaining little time of life. This is not to mention the real or exaggerated threats of acute diseases, such as those of "pandemics".
From organic diseases, it's easy to transition to mental and emotional diseases and imbalances. Rarely has there been a time with so many unhappy people, with depression, anxiety, emotional syndromes of this and that, relationship problems, loneliness, addiction, and disconnection from themselves, their families, communities, and nature. The use of psychiatric medications is at a record high worldwide. Is this a sign of progress or regression in happiness?
Unhappiness is still clearly manifested in surveys showing that most people engage in unsatisfying work that they consider meaningless. How can a person be happy, healthy, and financially secure in this way?
Finally, the balance of our personal lives is also shaken by social conflicts and tensions. Violence, corruption, waste of public resources, pollution of all kinds, impractical cost of living, bad news all the time, wars, and political divisiveness, unreliable public institutions. There are still hunger, poverty, children dying of malnutrition, lack of basic sanitation in various parts of the world, some right next to us. A situation of endless crises with little hope of improvement.
In summary, economic insecurity, health precariousness, emotional imbalances, and social problems generate intense personal suffering for most of humanity today.
Does it seem like our societies present a clinical picture of a severe patient? Obviously, yes.
My diagnosis
Diagnosis means seeking the true causes of the clinical picture, not just giving it a name. And every good diagnosis begins with an adequate description of the signs and symptoms, as we did above.
Notice that in this description, I started with the economic problem, then the health problem, then the emotional problem, and then the social problem. This was not by chance. I believe that the disease happens in this order. Economic suffering leads to health issues; the two together create emotional issues, and all three together produce social issues.
The economic issue is currently the most important. People not only feel financially insecure but also the current distortions in health, psychology, and social issues are motivated by this insecurity. For example, we see the greed of bad food industries parasitizing the population's health. We have the emotional imbalance of people at all levels of social hierarchy seeking money, including through corrupt and illegal means. And social and global conflicts are also a result of this quest for control over economic resources.
In my latest podcast (in Portuguese), I mentioned a scientific experiment known as "Rat Park". Rats placed in cages became stressed and addicted to heroin. Rats placed in a large natural space with good food and interaction with other rats did not become addicted even with heroin available. The experiment shows the importance of the whole life context for emotions and health.
And what is the main cause of this global economic and financial problem?
This is my answer, from a physician who has not only studied Medicine but also the Austrian School of economics, libertarianism, political philosophy, and has always been interested in these issues, as they discuss the basis of our problems.
The root cause of the global economic and financial problem is...
The cause of the largest disease in the world today is the control of monetary systems by governments. Or, speaking differently, the lack of an independent money.
Memorize this cause to understand the rest of the article.
From this cause, a whole series of errors and distortions1 that harm the health of societies are formed and maintained. It's like consuming too much sugar, which triggers a series of health problems that, in their final stage, end up causing suffering and leads to death. But before explaining what these major errors and corrupted social systems are, I need to clarify what is meant by a government-controlled monetary system.
Government-controlled money
Have you noticed that all the money in the world, whether dollars, euros, reals or others, are controlled by governments? Yes, they are issued by governments (or their central banks) and are managed and, this is the key word, manipulated by governments. "But shouldn't it be that way? What's the problem with that?"
Well, we live on a planet with an abundance of resources. The technological advances themselves provide even greater increases in these resources. We produce food, housing, transportation, clothing, furniture, electronic items, convenience items, and so on, goods and services, based on this abundance of resources on the planet. So far, so good.
But how can we exchange all of this with each other? Some produce some things, others produce others and the products and services need to be exchanged to be used well. We do this by assigning exchange value to each good and service. And we use money as an instrument or measure of this value attribution (for example, dollars or reals).
Did you understand so far? The money is for goods and services to be exchanged among people. It is an attribute of value, means of exchange, and savings (savings means the power for future exchanges). For example, the monthly subscription paid here for our column costs 9.99 reals. Your work is worth so many reals a month. Yesterday I bought an organic coffee package for 40 reals, and so on. That's the role of the currency (money).
In fact, this is such an automatic, natural and worldwide exchange that, as markets globalize, the true money is always one and the others are just local reflections of the main one, which is still the US dollar today. We talk in Brazil in reals because prices are expressed here this way; but, as there is always a conversion rate from reals to dollars, these prices could be expressed in dollars without problems.
In the past, other objects were used as money, not just the current paper money issued by governments: shells, salt, silver, gold and others. Past societies tried to use the object that was hardest to find or produce, at the time, for them.
What I want you to understand so far is that we can consider the production of goods and services with its unlimited potential, but, and here's the main key to understanding, the means of attribution and quantification of value of these goods and services and savings, the money, must be as fixed (limited) as possible (for example, gold or silver were). This is because money is a means of measurement2 (in this case, of exchange value). It is a unit of measurement, in fact.
In economics, the object of measurement is the set of goods and services of humanity and the planet, which tends to increase over time and with the advance of technology. But the means of measurement must be limited, fixed. The total amount of money in circulation in the world must be fixed, limited, to serve correctly as a means of measuring the value of goods and services. If there are 500 trillion dollars in the world, there should only ever be 500 trillion dollars in the world. This amount could never change, or the entire global economy would lose its correct reference value of all goods and services.
It's like to make the meter, which is a measure of length, changing length, calling one meter what was once one meter and twenty centimeters. Imagine the confusion? Or if the Celsius degree changed value, we would call 1 degree what were 3 degrees Celsius. Or if the kilogram were to become what 800 grams are today, we would all be fatter, on paper only. It is to avoid creating this widespread confusion in the measurement means used by humanity that they need to be fixed, defined, and forever so. If they are not forever, we cannot even correctly compare the past with the present.
Due to the fact that money is an intermediate good for exchanges and a unit of value for these exchanges, acting as a comparative measure, it is the only good that needs to be fixed in quantity, so that the comparison is real over time and does not distort. This is equivalent to the requirement that a meter have the same length always, a Celsius degree have the same heat delta always, and a kilogram have the same weight always. The representation of the total of the economy (the whole set of goods and services of humanity) in a currency (money) has to have a fixed value always3.
Up until now, humanity had already created excellent fixed measurement means for several important items in life and human relationships, such as length (the meter), temperature (degrees Celsius), pressure (pascal), speed (meters/second), weight (kilogram), and others. But, unfortunately, for the value of goods and services, it has not yet adopted a truly fixed and reliable measurement means.
This happens because the means of value measurement, currencies, are controlled by governments.
This control means possible manipulation, especially after gradually abandoning the backing of money with gold (which has a relatively fixed amount, but even so, not perfectly fixed) in the first decades of the 20th century. Manipulation generates what is called monetary base expansion or contraction, increase and reduction of money in circulation, at the pleasure of whoever controls the currency.
It's like the government could reduce the length of the meter, so that everyone becomes taller on paper. Or increase the weight of a kilogram, so that everyone becomes skinnier (and supposedly healthy) on paper only. Or reduce the heat of a Celsius degree, to say that we are frying in the supposed global warming (better not give that idea).
These measurement systems, being constantly manipulated by governments, not only lose their reliability, but mainly lose their practical use, no longer have a true measurement function, only deception. Imagine people from countries where governments manipulate these forms of measurement differently trying to interact and talk about length, weight, and temperature. Only relationships based on false measures would happen, messing up everyone's life and creating widespread distrust.
And that's what happens in our days, because we have a monetary system controlled and manipulated by governments and central banks. Economic information is biased, it does not transmit true information about the value of goods and services and the entire local, national and global exchange market becomes confused and does not work properly. What's worse, investment and divestment decisions in the productive sector also become mistaken, generating a spiral of financial problems and their bad consequences for workers and entrepreneurs.
To help you understand this better, it is lacking an explanation of how governments manipulate currencies...
Governments manipulate currencies because they control them
Governments are the issuers of currencies and today they do not even need to be backed by gold or anything scarce to issue them. When they print more currency, governments are altering the measurement standard and savings of wealth, as if they were increasing the length of the meter, the weight of the kilogram, or the temperature of a Celsius degree. It is easy for you to understand this. This increase is called an increase in the monetary base.
When the monetary base increases, the values of the goods and services measured in this currency, i.e. prices, also increase. This is what is called inflation, more technically, monetary inflation.
Why does the government print (create) more money? To support their tremendously large expenses, which are increasingly large all over the world.
For example, who do you think is paying for the new wars and the excessive restrictions of the "pandemic"? We do, via governments (inflation is one of the ways we pay). Not to mention the expenses of the governments themselves, which are also excessive, with departments and more departments of everything and more, and public positions, some with privileges that, we already know, especially in Brazil, are absurd.
Today, the manipulation of the monetary base is not only due to the printing or introduction into the market of more money by the government. This manipulable system, not linked to something real and limited in quantity, also allows banks to increase the monetary base through inconsistent currency credit. It is as if the banks also increased the monetary base. This is how economic-financial bubbles are formed that explode from time to time.
The government also manipulates the monetary base by controlling the interest rates offered to the market to purchase government bonds. It promises to pay more or less for these bonds in the future, increasing or reducing interest rates. When monetary inflation increases due to the excess of money in circulation, the government increases interest rates to finance itself through public bonds and not through printing money. The entire economy suffers from the manipulation of interest rates. When inflation seems under control, the government also reduces interest rates artificially. The increase or decrease of interest rates by governments is transmitted to the entire economy, which lives, thus, on a roller coaster. But who will pay the interest rates that the government promises? You already know.
In a continuous spiral of manipulation of the amount of money and public interest rates, how can currency be a trustworthy means of measuring value (prices)?
And it is not. With currency fluctuating in quantity, all prices also become unregulated and the economy lacks information on the true value of goods and services. Product exchanges and investments take place in this deceptive environment and serious economic imbalances arise. It is natural, then, for phenomena such as price inflation, businesses in difficulty, unemployment, inability for people to save, inability to acquire assets, to have leisure, to travel, poverty, misery and, with that, widespread corruption, violence, and all sorts of social problems, emotional problems and personal health problems to occur. (Almost all people, in a technological society like the current one, could have a high standard of living, even without being a celebrity; but we do not have it due to these distortions). Do you see how we have thus shown the origin of the problems from the beginning of the article?
Governments can manipulate currencies simply because they control them. Because money is still dependent on governments and does not have the characteristics of a precise measurement system (fixed and defined), it does not function well in the present and as savings for the future. "But can it be different?" We will see later that yes.
Our diagnosis, then, is that the current illness of our societies, with its signs and symptoms that cause so much suffering, is caused by a manipulable monetary system controlled by governments.
What would an ideal monetary system be like?
Before understanding what the ideal monetary system would be like, let's remember why it is important: because virtually all of our social interactions are exchanges of goods and services and for that a reliable measure of value is necessary. If we have such a measure, human interactions become honest, authentic, and well-informed, with money being a real and efficient means of exchange and savings (capacity for future exchanges). This brings a whole horizon of trust, prosperity, and balance to humanity. Just as, for example, engineering has progressed with the reliable metric system, society will only have economic stability with a correct system of measuring the value of goods and services.
And an ideal monetary system would be one in which the currency has a limited quantity, for example, 21 million units (spoiler: there is already one like this, search for it or follow the links at the end of this article). It could be 50 million, 100 million, 1 trillion, any number, but it would have to be limited and fixed, immutable, like the length of the meter. A system in which no one could ever increase this value and it was not possible to create more money, always having a fixed amount of it.
In this system, all the goods and services in the world would be referred to, for the purpose of exchange value, in this currency. Prices would be expressed in this currency, salaries, investments, credit, and everything else. And as humanity produced more goods and services, including technological progress, what would happen naturally with these prices? Instead of what is happening today, where all prices in the world are on average going up, prices would fall. People's purchasing power would increase and everyone would become more prosperous, yes. This (deflation) is the natural result of increased productivity from technology, because as there are more goods in society, society as a whole becomes richer. And this does not happen because our monetary system is inconsistent and manipulable.
You may still not be aware of the importance of a correct, limited, and fixed system of measuring value in the economy. However, just imagine a lottery game with a draw from a basket of numbered balls. If the balls all have the same weight and size, made of the same material, in other words, have fixed characteristics, the game is honest and proceeds without distortions. If people who control the draw manipulate the balls in their characteristics, so that some are more selected than others, or even if they put more balls with the same number in the basket of balls, fraud occurs and the draw can be directed to the benefit of the manipulators.
The same thing happens with a manipulable monetary system. Governments and banks, which are closer to the point where the currency is expanded, benefit from the system and have greater purchasing power. Ordinary people, for whom this currency arrives later, having already driven up inflation and distorted prices, become poorer. In fact, the manipulators become richer at the expense of the general public who become poorer.
In an system immune to manipulation and with a fixed quantity of money, this does not happen. Such a system needs to be independent of governments or anyone else.
We are, virtually all of us, poorer, because in recent years, currency manipulation has been huge worldwide, under the guise of "pandemic," wars, and other government expenses. Besides, in practically no country do they care to drastically reduce public spending. And this only happens because we accept a monetary system controlled by governments.
It is as if we accepted a metric, weight, or temperature system, also controlled and manipulated. Equally, it wouldn't work. Did you understand?
Let us continue, however, in our assessment of the current situation of the world…
Why did we not know about all of this before?
Well, the thinkers of the Austrian School of economics, such as Mises, have been warning us for decades about this. However, they were suppressed in universities and in the media; they are hardly studied or disseminated. But the main reason why such important information does not reach us is that it does not interest those who benefit from monetary control by governments.
Governments and their entire structure of influence have no interest in losing control and the power to manipulate the monetary system. Banks and the financial elite that have been benefiting from this system, which many call the fiat system, also have no interest.
Fiat means "let it be done," like "Let there be light!" (fiat lux) from Genesis. Used to characterize the monetary measurement system manipulated and controlled by governments, fiat shows that it is a system in which the government, arrogating itself as God, says "let more money be created out of nothing”.
Private economic agents who benefit greatly from government spending, such as contractors, industries that sell to governments, traditional media, and others, also have little interest in this fiat system being known for its serious effects. Thus, a series of interests come together to prevent the economic value measurement system from being corrected and becoming independent and fixed, as it should be.
What is then done so that the monetary system problem is not known? Simply, other problems are created, emphasized or exaggerated, and they say that our suffering and restlessness are due to these other problems. In short, they divert our attention.
Here is a list of examples of problems that those privileged by the fiat monetary system want us to believe are our real problems. Notice that almost all of these problems would not exist or be extremely minimized if the fiat system did not exist and was replaced by a true monetary system.
List of problems to distract your attention from the real problem
It is part of the pathology of the current system, the disease of our society, to have these problems arise and be emphasized. In reality, it is to distract our attention and not solve the bigger problem, which is the manipulated monetary measurement value system.
The pattern of diverting our attention from the main problem is almost always to create problems and crises and then establish rules, laws, and controls to solve or alleviate these problems and crises.
The idea is to make people believe that all these controls and regulations proposed by groups of "experts" are necessary and that this is the ideal path of society.
The ultimate goal is to make each person not need to use their own critical reasoning to accept or reject this collective offer of problems and solutions, as it is this individual reasoning that has to be fought against for the fiat system and its distortions and privileges to persist. People cannot discover, one by one, their own reasoning ability and their power of choice and, therefore, reveal the falsehood of the system and choose to reject it.
Traditional media has been the main instrument for the spread and cultural impact of these crises and problems. It coordinates and promotes group thinking that dulls critical reasoning and individual questioning.
Let's look at these crises, especially the current ones:
International wars and tensions: Created, promoted and funded with money from "nothing" by the fiat system. See the current war in Ukraine and other recent ones (Iraq, Afghanistan). Great targets to deflect blame from problems caused by the fiat system, such as worldwide inflation and the risk of an unprecedented global hyperinflation.
Terrorism: Conflicts between groups over territories, imposition of ideologies and resources, also funded by the fiat monetary system and motivated by poverty and emotional instability created by it in various parts of the world.
Climate change: Distraction from the real environmental problems, which are the pollution of the air, water and soil and, therefore, of food, by the action, for decades, of large industrial conglomerates privileged by the fiat system, such as the food and pesticide and transgenic industries.
Pandemic and global health emergencies: Attempt to force the creation of a "Biosecurity State", with the justification of combating emerging or planned health threats. Distraction from the real health problem, which is the weakening of the body by environmental contamination, bad food, unnatural life and stress, also resulting from the false "fiat" monetary system.
Political division and disputes between left and right: Distraction from the monetary problem to the political. Attempt to polarize society and keep the idea rooted that the solutions to human problems come from governments and, therefore, it is crucial to define who will occupy them. In fact, the problem "are" the governments and their excessive power. A small government, even occupied by a bad governor, doesn't cause as many problems.
Ideological division between progressives and conservatives: Another attempt to divide society in relation to issues that wouldn't even become problems if the distortions of the fiat monetary system didn't exist. Attempt to keep people defending extreme viewpoints, in their social bubbles and tribes (group thinking), and avoid the discussion of nuances and individual critical thinking, point by point. Some of these issues become new problems and social crises, such as these:
The problem of abortion: The problem is largely created by poverty and financial insecurity and its resulting health, emotional, and social conflicts generated by the fiat system. In a prosperous society where people have more income and assets, it would hardly be a controversial or priority issue.
Transgenderism and LGBTXYZism: Widespread promotion of a strictly personal choice issue among adults, with rare cases of medical intervention (gender dysphoria) in children or adolescents. A deviation from the discomfort and emotional traumas in families and adolescents, also resulting from the insecurities generated by the fiat system and its distortions, to a falsely early personal issue4.
Critical race theory: Another transfer of blame from a real economic problem caused by the fiat system and its history of producing the poor and privileged. Blaming this problem on "whiteness" or other targets with a clear intention of social division and distraction from the true economic problem.
Problem of fake news: A false crisis to attack the right of free debate among human beings, freedom of expression. The idea that people are unable to listen to different and contradictory opinions, make their own conclusions, and make choices freely. The totalitarian concept that "experts" can decree what is right and censor opinions that disagree with them. A direct path, similar to book burning in Nazi Germany, to Orwellian totalitarian states.
These forced and exaggerated crises and problems aim to establish new forms of societal control:
The "Biosecurity State," which we talked about above, arising from health and pandemic crises with centralized global entities giving orders to local governments.
Financial and personal use of money controls, with the creation of digital fiat currencies, the so-called CBDC, digital currencies from central banks.
International treaties and agendas, such as the UN's Agenda 2030, which supposedly establish rules to resolve these crises and problems.
New public and control policies promoted or recommended by private and non-elected international organizations such as the World Economic Forum and think tanks.
Normalization of public policies restricting economic, circulation, and even health freedom, as we have seen in the last two years. It may reach the widespread establishment of a social credit system, where people acquire or lose greater freedom based on certain behaviors, as already exists in China.
Disqualification of the authority of the family and parents in physical and mental health issues of children, now governed by governments and their laws. This also in relation to the autonomy of education.
Normalization of censorship of free opinion debate and controls over the internet and social networks.
Extreme direction of culture through television and mass media in relation to the above agendas.
It is so much unnecessary trickery that it gives one an uneasy feeling even writing about it, sorry.
As I said above, the goal of diverting the public's attention towards these pseudoproblems (“pseudo” because they either wouldn't need to be treated as a crisis in this way or because they wouldn't even exist in a non-fiat monetary system) is to prevent people from thinking for themselves. Don't train this type of individual and critical thinking, which is the great power we have, even greater than the power of the manipulators and privileged of the current system.
With many people doing this training and exercising personal critical thinking on a daily basis, the entire false system would soon fall apart. This is the great fear that those who benefit from it have.
They exaggerate a problem and propose the solution of “experts” for it, without you needing to think or learn to think and criticize both the problem and the proposed solutions. That's simply the pattern. Knowing this pattern well, the next step is to exercise critical thinking with regard to everything that is offered to us in terms of information. And to know that we can accept or reject these offerings, freely, based on our own free analysis. It's that simple.
In society, everything is a relationship of exchange, it is an offer that invites acceptance or rejection. Including the information, suggestions and solutions that the mass media conveys to us are also an offer. It is an offer of contract that you can accept readily or analyze first and then decide whether to accept or not.
Knowing that you have the power to accept or reject (kindly, with a “no, thank you”) these offerings, based on your own thinking, not from tribes or bubbles, is the greatest fear that elites, governments, and the privileged of the distorted current system have.
It's time for us to start exercising this power of thinking for ourselves and accepting or rejecting the offerings that social agents and the media propose to us.
And there's nothing better than this monetary system problem, controlled by governments, for you to understand all the above critical analysis, think, re-think, agree or disagree with it, write your vision here in the comments (open for everyone to comment) and decide for yourself if you accept or reject the thesis that this compromised and false monetary system will be like this forever and doesn't need to change. Will it?
If you reach this point of critical thinking, I'll leave links at the end of the article to understand what I currently consider to be the best solution proposal. The one that suggests the widespread adoption by humanity of an incorruptible monetary system, limited in quantity (21 million units), easy to use, decentralized, and uncontrollable by governments, and that anyone can adopt. A monetary system that would truly measure the value of humanity's goods and services correctly, better guide investments and divestments, and provide everyone with the ability to save and accumulate wealth from their work.
This system exists, its technology is well developed, the links are below. All you have to do is want to study more and, above all, understand that its value is not its current or future price in fiat currency, nor how much money we can make from it (remember that this current money is “fake”?). It is the value that it has for the economy, society, and the future of humanity, as a correct monetary measurement system that it can be.
Thank you for reading this far! You're fantastic for having this patience and interest! Big hug!
Here are the links to a possible solution that already exists (the treatment)
Attention! This article does not constitute financial or investment advice. It has only an educational purpose. Do not invest your money based on information received from only one source.
This an entire magazine dedicated to the solution
This the channel of one of the best teachers of this solution and one of his videos:
This is an episode of the "BitBuyBit"5 podcast that explains the many benefits of using the solution, with great people, Max and Gigi:
Sounds good for you to start a journey of learning and critical thinking. Best regards!
Watch this video now: https://twitter.com/dergigi/status/1639586040540286977.
The sequence of natural numbers, 1, 2, 3, 4, 5, 6, 7, 8... is also a means of measurement in the case of quantities. And this is the means of measurement that is the basis of all other means of measurement. But then, you could say to me: "But this means of measurement is not limited, it is infinite, because numbers go to infinity." Yes, but it is not this set of them that is the means of measurement, the set is the object of measurement. The means of measurement, in this case, is the unit (1), which is completely limited. The unit (1) is what makes the transition from 1 to 2, from 2 to 3, from 3 to 4, etc. The principle of the necessary limitation of the means of measurement applies even to the set of natural numbers, which is infinite. Without this limitation, it would be impossible to trust the sequence of natural numbers, because we would not know what 5 (5 units) is worth, 90 (90 units) or 700000000 (seven hundred million units).
Does this have an implication on the calculation and variation of the macroeconomic aggregate (wealth of the economy as a whole)? Yes and no. It practically makes this method of exchange and savings (future exchanges) unusable for expressing value of the aggregate. But the calculation of the variation of the aggregates is still done using the currency, or better, using the prices in that currency:
For example, consider an imaginary economy with 10 houses in total, valued at 20 units of currency each house (total economy, 200 units of currency). Years later, with increased productivity and wealth, there are 20 houses. The total value of each house falls to 10 units of currency (the currency increases its purchasing power with greater wealth), but the total value of the economy aggregate in this currency of exchange is still 200. The amount of aggregate variation is 2 (houses increased two times), which can actually be calculated by dividing the previous price by the new price. That is, the aggregate variation is calculated by the deflation (in case of increased wealth) or inflation of prices (in case of decreased wealth).
Instead of saying that people are "not in the right body", the correct thing to say would be that the products are "not at the right price", in the fiat monetary system. And that is the cause of various emotional problems.
I strongly recommend this podcast and all its episodes.